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captioningponsored by wpbt >> paul: consumer spending tks up, but there'a catch, much of the gain came from cash fo clunkers sales. so will americans still spen when aid from une sam disappears we get some answs. >> susie: intel says consur demands picking up as more and mo people buy laptop computers. the computer chipmakerays it expects toost stronger sales in the third quarter. >> paul: tonight's mket monitor guest is a lg-term bull, buhe thinks profit taking might be wise right about no he's john dorfman, chairn of thunderstormapital. >> susie: then, rooms fu of people busy awing the latest in anited films. t it's not hollywood, it's india. we look the latest outsrcing trend that's turning into a blockbuster h for
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bollywood. >> pau i'm paul kangas >> susie: and i'susie gharib. th is nightly business report for friday, august8. "nightly business rert" is made ssible by: is program was made possible by contributio to your pbs station from viewersike you. thanyou. t 7//& >> susie: good eveningveryone. people didn't ea more money in ly, but they spent a bit mor and economists wcomed the news.
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the small pop in snding, just 0. is thanks to the "cash for clunkers" program. personal income waunchanged last month accordi to a report today from theommerce department. the big question now iwhether frugal consumers will ep spending, even when th government'stimulus programsnd. scott gurveyeports. >> reporr: it was quiet today at the hyundai dealershiin jersey city. when you d beneath the heline that said consumer spending was up in jul you quickly discer that without the cash for clunkers progra spending was fla in fact, spending on nonurable goods decled for the month indicating tt consumers buying cars c other spending to keep within their budget. ecomist julia coronado believes that behavior wil continue. >> there much less willing to spend freely. everything is pland out and carefuy executed so i think we are ablutely in a new normal and i dot know how long that will last. buit will definitely be a couple of years asonsumers rebuiltheir savings and sort of adjust to the shock tt's hit th.
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>> reporr: this long term change in buying habits rais concerns the economic recove will falter ce government stulus progrs end. a cashor appliances program is now in the worksut the clunke program has ended and incentives for homebuyerend soon. still, economist michelle mer believes the private sectocan provide the imulus for future growth. >> there's aecent recovery gog on in the housing market which we think should the el momentum elsewre. and we're starting ao to see business hire and seeing a decline in jobless claims. so therere signs that the economy is recovering and th it will be sustaable even after scal stimulus fades. >> reporter: and at the hyuni showroom, mager frank valanza is optimistic. >> obvusly we have less traffic in the shooom than we had ring that period. t its steady still. we're selling cars. it's not going to be wt it was for the nth of august. but we're looking for year or year improvement hefully september will bbetter than lasteptember. that's h we gage success in
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this business. >> reporter: most econists believe the cret for success ll be jobs. not until employment picks u will sentiment improve and consumers become morwilling to part wh their money. sct gurvey, "nightly business report", new york. >> paul: after eight concutive advances, ll street's blue ips opened lower on profit taking. the dow fell 35 points ely on, but the tech laden nasdaq ined 10 points paly on intel's bot in third quarter revenue guidance a dell's upbeat ouook late yesterday. news of a dr in consumer confidence helped nd the dow to a 75 point lo at noon which was a drag othe market in general, leadingo a mostly lower ose.
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>> susie: whlpool is shutting down a manufacturingacility in evansvle, indiana next year. the move will eliminate 1,10 full-time jobs onearly 2% of its rkforce. the closinis among several anges in the company's manufacturing operations whirlpool sa production of so of its refrigerators will be transferred to anxisting plant inexico.
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the compy is still deciding what to do with 300 ployees who work at a pruct- development nter. whirlpoocontinues to cut costs as demand for big-tickettems has fallen ding the recession. >> paul: those whirlol workers wi receive unemployment benefits. but a gring number of jobless people will soon see the benefits run out as we continue our look at reving the economy, darren geh reports, many people who rely on unemploymenthecks are lookinto congress to keep those weekly payments comi. >> reporter: afterlmost a year of searching for a full-ti job, bill boteler was rried he would exust his unemployment benefits. he was able to survive, says, because coress passed emgency legislation extending those benefits. >> the cost of living in.c. is very high. so, witht it, it would be just impossible. with it, you can just maket if you're real reful.
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>> reporter: boter lost his job th an environmenl non- profit in tober of last year. ough he works two part-time positions now, he's struggli to get job interews. in t meantime, he calls his unemployment checks crial. >> i really just havenoughor the rent, basilly. and then i try to figureut ways to, you know. sometimes, my friends sometis buy me somethi to eat. >> reporter: but uess congress appres another extension. boteler and millions of hers could see thr checks stop. the national employmt law project esmates over half a million people wl exhaust benefi by the end of seember. in all, 1-1/million will run t of coverage by the end of the year. democratic congresonal leaders say ey won't let that happen. ey are promising to extend unemployment benits when they rern to washington next month. the national eloyment law project, or nelp, executive director cistine owens considers benefit extension money well-spent. >> it would be more costlyo
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e economy for us not to take care of those woing families than it woulbe to invest in is benefit extension. and inact, over time, this pays itself back. >> reporter: not everye agrees. douglaholmes represents the business community, whicis now struggli to pay benefits to workers. he says the tension could cost taxpayers as much as $70 billion. >> we ne to sort of ratchet into a different gear anlook at whawe should be doing for the lo-term unemployed, and not just paying adtional weeks of unemployment insurae compensation. >> reporr: but for boteler, government money for unployment insurance is a question of fairness. >> wt about all the money they spent on the bailout that's costing the govnment a lot moreoney. >> ts is what really keeps the people going. this is ththing, this makes a difference. >> reporter: congress now considerina 13 week extension of benefits, but only states with higjobless rates. with the national rate expted keep rising, advocates for the unployed say that's not
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enough. darren ger "nightly business report", washington. >> susiein a big legal victory for comcast, a fedal appeals court s essentially given giant cable companiethe go- ahead toxpand or merge. the decision annnced today, threw out a rule that lited cable compies to 30% of the market. comcast, the biggest.s. cable- televisionrovider, opposed the measure, saying itroze its business the reriction was imposed by the federal communicatio commission to avd cable monopoli. the court disagreed, sayg the litation didn't consider competition from compani like direc-tv a dish network.
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>> susie: the i-phone isaying "knee-how"o a new market: ina. today apple and wireless carer cha uni-com announced the i- phone will go on salthere before thend of this year. china has the largeswireless marketn the world in terms of subscribers with 650 million mobile phone aounts. about 140 million them are on ina uni-com. the compandidn't give financiadetails on the deal and didn't sayow much the i-phe will cost in china. thchallenge for apple will be marketing a new product ere its brand isn't widelynown. i-po in china accounted for less tha8 percent of all mp3 music player sales in 2007 >> paul: sus, apple shares toed the most actives on the nasdaq. we'll see them in just aoment as we take look at our stocks in the news tonight.
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anthose are the stocks in the news tonight, susi >> sie: paul, walt disney, warner brothers and sony entertainment ha something in coon: they all out-source animation to india. making amation films in india is much cheaper th in hollywood d that's fueling a boom for india's growing animation industry. as sapna bhachia repts, it now generates annual revenueof about half a blion dollars, and is poised toross the billion llar mark in just a few years. >> repter: in this office in hyderabad in sth india hundre of animators are breathing lives into cartoon characters.
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if you thi that animation is child's ay, then think again, as this is the place wre only the tougsurvive. this cliƩ is true for tapas chakravarty who the c.e.o. of dqntertainment, one of the first companies get into animatn outsourcing. >> i remember 20 it was so difficult en to get my foot into the door of any company and today get red carpet welcome and, the moscoveted international awar like the emmys are gettg picked up by inan companies. so, what is thsecret behind thsuccess of the indian animation outsourcing, sry? it is money. the hiring cost skilled people in india is l as a result of which oduction costs come down.
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a full-lengtanimated mie in the u.s. will cost $100-125 million, as mpared wit$25-30 million if work is osourced to india. animation is a hhly labor intense industry where numbers are important. >> we have arod 22,000 to 25,0 drawings for a complete 22 min show. >> reporter: baswa ru works as a prodtion manager and is sponsible for the timely delivery of the imated product. more tha100 people work on a 22 min film. the average age of people woing in this industry is 25 and all of them are ger to learn. six months to one year of training you have a alified guy in your hand, twyears of practice and he n compete with anne in hollywood. >> reporter: like llywood india has its llywood, which chns around 1,000 movies a year making india the worlds largest producer ofilms.
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analysts like indu miri think that this fact furtherelps the animatioindustry. >> you get the samtechnology as you would get in llywood or austraa or anywhere else and yet it is facheaper to do it re so i thk, it is a very mple business decision. >> reporter: clien from different untries send the ripts and storyboards to ind for production. badri narayan works as an animation supeisor and is responsible for the creati side of business >> we get thstoryboard and th we start with the layouts, i have to chk the quality of layouts with t references ven by the client or the director. on the layout is approved by me i give it to animators sequences. >> reporter: this is how 2d animation press works. now, indian mpanies are also ing 3d and highly skilled spial effects animation where more digital skillare required. when the film gold compass picked up an oscar for visl
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effects, artistes in indiaho workedn the movie rejoiced. >> in 3-4 yearindia will be the hub of animation conte development the y it is th hub for softwareevelopment. >> reporter:nd, peoplen indiwill build this story frame by frame. sapna atia, hyderabad, india. >> paul: monday,ur commentator says washington can't fithe economalone, it needs the private sector to do some heavy lifting. >> susie: investors are bailg out of cerberus capital management's two core dge funds. the wall street jourl reports the coany has been swamped with redemption requests: investors are asng for the turn of $5.5 billion or 71% those assets. cerberus began a rtructuring last monthhat opened a window for clients to pull money t of the fund. but it figured redemptionsould total less an half the funds' assets.
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>> paul: the governmenis suing u.p., for limiting its workers' ability to take medal leave. the case involves a u.p.s. worker, th multiple sclerosis who was fired for exeding the compans 12-month sick leave policy. the u.s. equal employmen opportunity commission say u.p.s. failed to accommote her condition, in viol

Nightly Business Report
WETA August 28, 2009 6:30pm-6:49pm EDT

News/Business. (2009) John Dorfman, Thunderstorm Capital LLC. New. (CC) (Stereo)

program was likely cut short due to a recording issue

TOPIC FREQUENCY India 9, Hollywood 3, Washington 3, China 3, Comcast 2, Boteler 2, Darren 2, Hyderabad 2, Financiadetails 1, Apple 1, Considerina 1, Ina Uni-com 1, John Dorfman 1, Mager Frank Valanza 1, Thanyou 1, Consur 1, Ina 1, Paul Kangas 1, Nd 1, Onearly 1
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